Pure Online business model

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product’s availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

Internet business models are categorized as business-to-consumer, business-to-business, and more recently, consumer-to-consumer. Business-to-consumer and business-to-business models typically sell goods and services or provide information designed to help visitors make purchase decisions. Consumer-to-consumer models involve consumer-to-consumer information or product exchange.

An online shop evokes the physical analogy of buying products or services at a regular “bricks-and-mortar” retailer or shopping center; the process is called business-to-consumer (B2C) online shopping. When an online store is set up to enable businesses to buy from another businesses, the process is called business-to-business (B2B) online shopping. A typical online store enables the customer to browse the firm’s range of products and services, view photos or images of the products, along with information about the product specifications, features and prices.

Pure-play Internet companies operate solely on the Internet, while click & mortar business models combine a physical presence with online selling or marketing. Click & mortar businesses may operate a website that sells products or advertises those it sells on the high street. The difference between the two business models is reflected in running costs, marketing strategies and customer perceptions. Internet business have fewer overheads but businesses that have a strong street presence inspire more customer confidence.

Marketing:

Pure-play companies have to invest more money, time and effort in marketing than a hybrid businesses. Businesses that have a physical presence, particularly on a national or international scale, are already known to potential customers, whereas Internet business have to advertise their presence more aggressively.

Perceptions:

Business that combine a presence on the street with online retailing may inspire more customer confidence than those that only operate online, according to the Internet Marketing Center. Customers believe that a business is less likely to vanish overnight if it has a customer presence, the website explains.

Benefits to Customers:

Companies that only operate online can sell products at a greater discount to customers because they have fewer operational costs. Clicks & mortar businesses can offer a more versatile service.